# Advertisement of Prospectus (Section 30)

## What does the section regulate?

When a company publishes an advertisement of its prospectus (newspaper, periodical, electronic media etc.), the advertisement is a short-form invitation to the public. To prevent misleading 'teaser' ads, the section mandates that certain contents from the Memorandum of Association be reproduced.

## Mandatory contents in the advertisement

The advertisement must specify:

1. Objects of the company (from Memorandum).

2. Liability of members AND the amount of share capital of the company.

3. Names of the signatories to the Memorandum.

4. Number of shares subscribed for by the signatories.

5. The company's capital structure.

## Why these five?

They collectively answer four investor questions:

What does the company do? (Objects)
How much skin in the game do members have? (Liability + capital)
Who founded it? (Signatories + their subscription)
How is capital structured? (Capital structure)

## Quick Memory Hook — "OLSSC"

O Objects · L Liability + Capital · S Signatories · S Shares subscribed by signatories · C Capital structure

Worked example

### Example 1

Example — Newspaper advertisement

P Ltd. publishes a half-page newspaper ad inviting subscription to its upcoming public issue. Under Section 30, the ad must state: (i) the main objects clause; (ii) that liability of members is limited to the unpaid value of shares and the authorised share capital; (iii) the names of the original subscribers to the Memorandum; (iv) the shares each such subscriber agreed to take; and (v) the present capital structure (authorised, issued, subscribed and paid-up capital).

⚠️ Common exam mistakes

Missing 'capital structure' as a required item — students remember objects and liability but skip capital structure.
Including signatories' names but forgetting to state the number of shares they originally subscribed for.
Assuming Section 30 applies only to print ads — it covers an advertisement of a prospectus 'published in any manner', including digital.

Bare-Act text Section 30 · Companies Act, 2013 · click to expand

Section 30: Advertisement of Prospectus. Where an advertisement of any prospectus of a company is published in any manner, it shall be necessary to specify therein the contents of its memorandum as regards the objects, the liability of members and the amount of share capital of the company, and the names of the signatories to the memorandum, the number of shares subscribed for by them, and its capital structure.

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Advertisement of Prospectus (Section 30) — Mandatory Disclosures

Worked example

⚠️ Common exam mistakes